PowerShares launches 2 low-volatility products

PowerShares Canada has launched a Canadian-based, low-volatility index class and U.S.-based, low-volatility index fund.

Read: Calm client fears with low-volatility funds

The new class invests primarily in securities of the PowerShares S&P/TSX Composite Low-Volatility Index ETF, which is structured as a class within the Invesco Corporate Class.

The underlying index for the class—the S&P/TSX Composite Low-Volatility Index—measures the performance of the 50 least volatile stocks in the S&P/TSX Composite Index.

The new U.S-based fund offers exposure to the S&P 500 Low-Volatility Index (CAD Hedged). It invests primarily in securities of the PowerShares S&P 500 Low-Volatility (CAD Hedged) Index ETF.

The fund’s underlying index replicates the returns of the S&P 500 Low-Volatility Index, with a substantial amount of its direct U.S.-dollar exposure hedged back to the Canadian dollar. The underlying index measures the performance of the 100 least volatile stocks in the S&P 500 Index.

“A low-volatility portfolio of equities may offer a better way for long-term investors to own equities, regardless of their risk tolerance,” says Michael Cooke, head of distribution at PowerShares Canada.

“This investment approach has historically resulted in higher relative performance compared to cap-weighted indices over the long term,” he adds.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.